This bill amends existing laws regarding employee leasing companies and their obligations concerning workers' compensation coverage. It allows client companies or leasing companies to secure workers' compensation coverage for leased employees, provided that the employee leasing company has a contractual obligation to maintain such coverage. The bill modifies the application process for licensing by requiring evidence that leased employees are covered by workers' compensation insurance, specifically stating that this coverage can be obtained through no more than two policies—one from the voluntary market and one from the residual market.

Additionally, the bill introduces a new provision that either the employee leasing company or the client company must purchase and maintain workers' compensation insurance for employees in an employee leasing arrangement. It also clarifies the exclusivity of remedy provisions, ensuring that both the employee leasing company and the client company are protected from vicarious liability for each other's actions, while still allowing for direct contractual liability between the two entities. The effective date of the act is set for 60 days after its passage.

Statutes affected:
Introduced: 277-B:9, 277-B:10
SB655 text: 277-B:9, 277-B:10